Kingston Resources Ltd (ASX:KSN) is seeking $13.5 million from a combined capital raise incorporating an $8.1 million share placement and a $5.4 million entitlement offer.
In the offer about 208 million shares will be issued while the placement will see up to 124.5 million new shares issued at A$0.065 per share, which represents a discount of 17.8% to the last closing price of A$0.09 per share on March 26, 2024.
The accelerated non-renounceable entitlement offer will be conducted on the basis of one new share for every six KSN shares held, up to a maximum of 83 million shares.
Developing Pearse Open Pit
Proceeds from the capital raise will go to the transition to open pit mining at the Pearse Gold Mine at the Mineral Hill Project in central NSW as well as underground resource development drilling, processing plant commissioning and general working capital.
Kingston recently upgraded the ore reserve at Pearse, now estimated at 260,000 tonnes at 3.7 g/t gold and 57 g/t silver for 31,000 ounces of gold and 470,000 ounces of silver.
“We are very proud to report the updated ore reserve for Pearse,” Kingston Resources managing director Andrew Corbett said at the time.
“The high-grade mineralisation within the Pearse open pits acts as a springboard to successfully get Mineral Hill back into conventional mining.
“The modelled revenue makes a significant positive impact on Kingston’s cash flow projections.
“We see this as just the first step in our transition back to hard rock mining at Mineral Hill and in delivering value from this outstanding tenement package.”